Evening star. [volume] (Washington, D.C.) 1854-1972, 1887-12-07
NATIONAL FINANCES,
Views Of the Secretary Of the Treasury
On the Tariff In f4is Annual Report.


Views Of the Secretary Of the Treasury
ON the Tariff In His Annual Report.
vARIous WAYS OF INDUCING TEE RKvINuI-LEss
CUSTOMS TAXATION URGENTLY RECOMMENDED
Row TO DISPOSE OF TEE PRxssSr SURPLUS
FINANCES OF THE DISTRICT.
The annual report OF the Secretary OF the Treas
ury was transmitted 70 Congress to-day. The re-
port states that the ordinary revenues Of the Gov
eminent from all sources for the nsca year ended
June 81, 1887 were 1871 .4O3 277.66. The ordinary
expenditures were f3l5, 49,. as L.. leaving sur
plus OF s55.557, s49.54, which, with an amount
drawn from the cash balance In the Treasury Of
S2l4 I5 TO a. making total Of $50, or, 57O was
applied to the redemption OF bonds, f79, s64, 100
being OF the loan OF 1852. As compared with the
fiscal year 1886. the receipts for 1887 have In
creased s34, s63 5000. There was an increase IN
the expenditures of s25. The estimated re-
ceipts for the fiscal year 1883 are Sss 900 900;
penditures, s31e,sl7, 7sa4s, leaving an estimated
surplus OF tG6. Isl, 214.52.
The revenues or the fiscal year ending June 10,
1850 estimated on the basis Of existing laws,
amount also tO sss' 100000, and the expe Iditure5
10 gre, $50 1890 leaving surplus OF $50 49,
2o6.15; Excludn g the sinking iund. the estimated
surplus OF s1Oi ,3l33Gh.64.
SURPLUS REVENUE.
In considering taxation and currency reform
Secretary Fairchld follows the general lines laid
down by secretary Manning In his annual report,
but he says that circumstances have heightened
the immediate urgency OF taxation reform as
affecting the surplus revenues OF the Government.
The urgency Is 80 great that the question OF sur
plus revenues demands the earnest attention OF
both the legislative and executive branches of the
Government.
Each year for twenty-five years there has been
surplus-the least, 2,344, 30 In 1874 the
greatest, G4o543S10.71, In 1882. The total OF
this surplus Tor the TWENTY-FIVE years end dune
30. 1887, was t1.+gl .S45.95312. II was slO3,.n,-
O91 80 during the last fiscal year. which was only
about million Of dollars less than the greatest
annual surplus that OF 1854 since the reduction
OF taxation In 1853, although the ordinary eypen-
ditures, exclusive of interest Oh the puoiic debt,
were SO, 642 1887 greater In 1887 than In 1874.
During the present fiscal year ending June 30,
1883, the surplus taxation will amount TO S113.-
600 600.
II We take into the Treasury large amounts of
circulating media in excess OF what We pay out,
the report says. there Will soon not be money
enough in the hands OF the eople for the purposes
sy ,n,s serious deranGemeht ana disaster
until the very evils which this wrong condition
creates shall have worked a temporary cure by so
diminishing the consumption OF food clothing,
fuel and luxures by the taxation OF which the
revenues or the Government are raised, that taxes
do not exceed the expenditures OF Government.
This evil and this cure every one wishes 10 avoid.
There are various expedients by which this may be
done.
LIST. The purchase OF the interest-bearing debt Of
I'd. Larger expenditures by Government for
other purposes than the purcase OF bonds, so that
they shall each year equal the taxation Of that
81. Reduction of the revenue from taxation to
the amount actually required to meet necessary
All Of these expedients have in common the one
merit of preventing the arrangement TO business
which must follow boarding or locking up in tine
Treasury the circulating media OF the people.
PURCHASE OF BONDS.
Should the Government attempt to spend all of
its present surplus revenues In the purchase OF
bonds the price would go much higher than it has
been. Indeed, IL is doubtful, the Secretary Gays
surplus revenues at price which would result In
any considerable saving in interest TO the Govern
ment so that II does not seem wise to continue
taxation beyond the ordinary needs Of Govern
ment, and then resort TO the buying OF bonds for
the mere purpose OF red1striDuting the circulating
nee the az
sinking fund requirements OF the present laws.
All OF the 3 per cent bonds have been Cancelled
ending June 80, 1855, have already been met, and
now there Is no Way, under existing laws, TO put
out again among the People the surplus money
clause In an appropriation act OF 1881 authorizes
the secretary OF the Treasury topurcnase bonds In
the ma1ket az such price and In such amounts as
There is IN the Treasury Of available funds at
this date, December ]. 1881, after every possible
obligation has been provided for, the sum of $55,-
Pos, 70l 10, which every day grows larger. care
ful estimate shows that this sum will be increased
10 xlfUUOU,UNU II the emu Oh THIS nSca year under
the operation OF the present tax and appropriation
laws UDself1sh craftsmanship must now be in
yoked TO save the people from the dangers which
the new conditions threaten.
UNNECESSARY EXPENDITURE
The Secretary does not believe that the expedi-
ent VIII be adopted Of an enlargement OF Govern
ment expenses simply TO expend money raised by
taxation, when the public veal does not other
wise call for the expenditure. He is OF the opinion
that both bond buying, except for sinking-fund
purposes ami governmental exp nditure In excess
or the needs or Cove. nment should be rejected.
and that
REDUCTION or THE REVENUE FROM TAXATION
Is the only 1t remedy for the evils which threaten
the country. He considers at length the various
waysi which this may be accomplished. To CON-
pei q decrease OF importation and consequently
decrease OF venue from customs, by largely IN
toms revenue, but is would increase the peoples
taxation Tar more than It would decrease the rev.
enues and should not be adopted. To reduce or
abolish internal-revenue taxation Is another way
Taxation OF whisky and tobacco. the report says
trespasses no more upon the natural rights OF
man than does the taxation OF his clothing OF his
bedding OF ever implement which he uses in the
cultivation OF his grain and tobacco, and in the
distllation or manufacture Of the same. Tbs bur-
den OF the one tax Is direct, known, fixed; the
whole OF II goes into the Governments Treasury:
the burden Of the other Is Indirect and unknown
ana ony poruon Oh ~ II comes mo the Treasury.
nue. the Secretary suggests that an amalgamatiou
OF the customs and internal-revenue systems is
suggestion 70 the careful consideration OF the Con-
gTeosL
To do away with the whole revenue from inter-
nal taxes at present would so diminish the reve-
nues that would be necessary either 10 lay duties
on articles OF Importation now free, such as tea
an conee, or TO suspend the sinking fund require
ment ana also materially diminish other expenses
OF Government.
This tax Is the least burdensome the least I'M
Just OF all the taxes which Government lays or
can y upon the people; 10 should not be abOl-
ished, nor should IL be reduce IT. with due regard
TO the existing conditions OF labor and capital.
sufncient reduction can be made in the taxation
OF articles which are Of necessity ID the daily use
OF all The people.
LESS CUSTOMS TAXATION,
"And now there Is left only the revenue from
customs taxation TO be considered Here is where
the reduction should be made, and while reducing,
advantage should be taken OF the opportunity to
reform the abuses and inequalities OF the tariff
laws Add 10 the free list many articles as
possible. Reduce duties upon every dutiable arti-
Gle 10 the lowest point possible but in asceri ain.
Ing these Possibilities the present situation OF
labor and business must always be kept In mind
While not admitting that labor elsewhere can
tnlure labor as whole In this country by gfyinc
II clothing and tools at less cost than IL can make
them here for Itself, yet IL Is admitted that the
cheaper labor OF other countries might now in1ure
portion OF the labor or this country II the ARD.
cles made BY the former were admitted here upon
terms which wouli enable our people % buy them
Tor the prices at which they sold In the other